Low Compliance ComplexityMI

Michigan CAM Reconciliation Compliance Guide for Landlords

Statutory requirements, tenant audit rights, and landlord obligations for commercial CAM reconciliation in Michigan.

Primary Statute

MCL 554.601 et seq. (Landlord-Tenant); limited commercial provisions

Key Takeaway for Landlords

Michigan's tax uncapping at sale means acquired properties may see dramatic tax increases in year one. Build this into acquisition due diligence and first-year CAM estimates.

Reconciliation Timing Requirements

No statutory deadline for commercial CAM reconciliation.

Tenant Audit Rights

No statutory commercial tenant audit rights.

Required Disclosures

No statutory commercial CAM disclosure requirements.

Penalty Provisions

No CAM-specific penalties.

Regulatory Body

Michigan Department of Licensing and Regulatory Affairs (LARA)

Michigan CAM Context

Michigan uses a 'capped value' system where annual assessment increases are limited to the lesser of 5% or inflation, but property tax 'uncaps' upon sale (assessed value resets to market). This creates significant CAM tax implications at property acquisition.

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